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How does Life.Cafe make money on 0% interest?

Before I answer this question, we must all have a basic 101 of how institutions make money on lending.

An institution has an initial fund. Then, they determine an amount of this fund that will be “lent” out to various “Stores of Value” with the end goal being that the amount they lent out will grow in total value.

If the institution charges fees, commissions, interest, penalty charges, then this is one way that their “units of stored value” grow in total value. This is often the way the institutions make money off “consumers”.

There are many “stores of value” that are growing at a very predictable rate and timing outside of the “consumers” fees and interest. For example Bonds are considered a very stable and predictable store of value. Arbitrage is basically buying a “store of value” in one market and simultaneously selling it in another market at a higher price, profiting from the temporary difference in prices. This is considered risk-free profit for the investor/trader.

Now let’s re-examine this question of how Life.Cafe makes money on 0% buying power subscriptions?

Life.Cafe is making money from the value increase of the store of value in its purest form. Our proprietary predictive algorithms and knowledge base of data, enables a very liquid, transparent, and secure way to ensure arbitrage is made from the marketplace’s predictive behaviors at scale. AI predictive analytics are more accurate with larger amounts of data. Many investment firms use their own data to invest their customer’s funds and create similar value.

Life.Cafe’s timed and guided release of buying power to our customers is understanding our customers behavior and needs. We do not use this data for ad targeting or to exploit our customers. Instead we turn this data into a real time pulse of global arbitrage to benefit our customer’s needs by offering instant access to affordable 0% interest lending. If we can make more by serving our customer’s true needs, we’d be silly not to.

If this is possible why do all institutions charge interest? Actually not all lending institutions do charge interest. There are many cultures around the world who have lending options that do not charge interest like ROSCAs or lending circles. Across the world friends and families have come together to lend each other money. Each person pays a monthly amount determined by the group. Each month, a new member of the group receives the loan until everyone get their chance. No credit check or interest is involved in these transactions.

How-lending-Circles-work---Mission-Asset-Fund

Lending Circles image explained by MissionAssetFund.

Life.Cafe is the next generation of this thousand year old way of lending, applying AI predictive analytics and anonymous lending groups at scale. This is one of the ways Life.Cafe ensures constant access to everyone in our system while earning profits from the arbitrage of our subscriptions. Life.Cafe’s “units of storage” continue to grow our Life.Cafe fund helping more and more people around the world access buying power. As long as we have more people who need access to buying power, Life.Cafe makes money. Making the goal of buying power to be truly about helping as many people as possible with their funding. This is our simple win-win approach to lending.

So when someone asks how Life.Cafe makes money, you can say we make money together by being more transparent, continuously optimizing with our AI predictive analytics, and being more secure.

Reference articles:
https://www.investopedia.com/terms/s/storeofvalue.asp

https://www.investopedia.com/ask/answers/what-is-arbitrage/#ixzz5U6yYvBFD

https://www.moneyunder30.com/how-banks-make-money

https://missionassetfund.org/lending-circles/

How does Life.Cafe make money on 0% interest?
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